When you rent, your landlord’s insurance takes care of damage to your home caused by fire, storms, vandalism, or other natural disasters. So, in the big picture, you’re pretty protected, right? Not exactly. Renters insurance, which is pretty affordable, can help cover damages not covered by the landlord’s insurance and protect you from losses, which can happen when a landlord does not carry enough insurance to cover your property.
What Can Renters Insurance Cover?
Like any insurance, renters insurance policies cover a range of items and those can differ depending on the company through which your renters insurance is provided. The specifics of a renters insurance policy are important to understand as you work towards investing in one that’s appropriate for you. However, there are a variety of items that the average renters insurance policy covers, and those things include:
Personal Property
Renters insurance covers personal property (such as your clothes and furniture) from damage or theft, with a few limitations. This is important because a landlord’s insurance policy cannot cover your personal belongings, much in the same way that your renters policy cannot cover the building itself, since you do not own the building.
When considering “is renters insurance worth it” it’s easy math to do. Compare the cost of a policy to the cost of replacing everything you have in your home. Most renters insurance policies start at around just a few hundred dollars per year in total. Compare that to the thousands or tens of thousands of dollars in property you own. Everything from your furniture to your electronics to your clothes. In almost any case, you’ll quickly realize that renters insurance makes sense for you. And that’s not the only benefit!
Liability Coverage
This coverage in a renters insurance policy protects you from liability in a variety of situations where you’re at fault for damage or personal injury. For example, if someone were to fall and become injured in your apartment, you may be legally liable for the medical expenses associated with their recovery. Liability coverage in a renters insurance policy will offer you financial protection against some or all of your financial responsibility to pay for their injuries.
Like property damage, medical damage liabilities can be extreme financial burdens. Severe injuries can require $100,000 or more to remedy. Protecting yourself from being on your own to pay for these costs is easily worth the investment into a policy. This is one reason we generally say “yes!” to anyone who asks if renters insurance is worth it.
Loss of Use Coverage
Renters insurance offers protection that goes beyond the walls of your home. It can also provide coverage if you can’t live in your apartment or home due to a covered loss. Some examples of this would be if a fire, or a storm make your residence unfit to live in. The specifics of what constitutes covered loss of use will change with your policy, of course.
Loss of use coverage means you can find a place to stay while your home is being repaired without breaking the bank. In fact, even though your landlord is responsible for fixing the physical apartment or rental home, you can still file a claim for additional living expenses (like hotel bills) and “loss of use” (your own home being out-of-service). Having a policy in place can help you recoup the costs of your temporary displacement.
You May Need Renters Insurance Anyway
Many landlords require renters insurance as part of your lease agreement. This added coverage can help protect your investment in your belongings and provide your landlord a level of protection if something were to happen to your rented space.
If your landlord requires insurance, you should ask to see a copy of your landlord’s requirements. It is a good idea to check to make sure you are looking for policies with appropriate coverage for your lease.
It’s Worth It Even When You Don’t Need It
Even if your landlord doesn’t require renters insurance, it’s worth the investment. Sometimes called tenant insurance or renters insurance, these policies provide coverage that landlords don’t, including damage to your belongings and liability coverage in case someone is injured in your rental home or another apartment. Most landlords won’t be affected by your belongings being damaged; however, they will be affected if you or someone else in your family is injured on the premises.
So, Is Renters Insurance Worth It?
Absolutely! Every individual coverage offered by the average renters insurance policy is worth it on its own. But combined, it creates a full suite of protections that makes its value indisputable. The only question is what exactly your policy should be. For that, we can help you make the right decisions to get the policy most suitable for your needs!
Contact Iott Insurance for a Quote Today
Iott Insurance has been a part of southeast Michigan for over 50 years. We can help you plan your insurance needs and find you the right policies or plans to protect you.
Or you can visit one of our three offices in southeast Michigan:
Blissfield, MI – (517) 628-4574
Lambertville, MI – (734) 807-3825
Petersburg, MI – (734) 215-9884
Follow us on Facebook for news and community updates.